HM Revenue and Customs Business Brief

Clive Efford: To ask the Chancellor of the Exchequer 
	(1)  what representations he has received on the provisions of HM Revenue and Customs Business Brief 50/07;
	(2)  if he will make it his policy not to pursue back-payment of value added tax from sports and leisure trusts under the terms of HM Revenue and Customs Business Brief 50/07.

Jane Kennedy: Representations are regularly made to Treasury Ministers and officials on a wide range of issues.
	HM Revenue and Customs (HMRC) has a statutory duty to collect VAT that has been under declared, and may assess to recover arrears of VAT where VAT was properly due but was not charged and was not paid over to HMRC.
	Although the Commissioners of HMRC may make concessions in certain circumstances, for example where administrative savings would outweigh the tax, in this instance, not collecting VAT that is properly due would be beyond what is legally permissible.
	However, the Commissioners do have discretionary power to grant extra time to pay arrears where this is appropriate in the individual circumstances of the taxpayer and consistent with the commission its arrears it should approach HMRC to ask for a time to pay arrangement to be considered.
	Furthermore, where evidence can be provided that an individual taxpayer has accounted for VAT incorrectly because of a bona fide misunderstanding, or because he has been misdirected by HMRC, within the terms of extra statutory concessions 3.4 and 3.5 as published in HMRC Notice 48?Extra statutory concessions, HMRC will not seek to recover arrears of the tax.